In February 2004, MicroSave hosted a Virtual Conference on Electronic Banking for the Poor. This paper summarises the discussion which brought together 500 participants and generated 400 postings. Discussion topics were varied and included, technology, business case, pricing, distribution, and customer value.
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Customer Service – Why It Is Important for MFIs
The note analyses the reasons for excellent customer services as a prime mandate for a market led MFI, which include retaining customers, building through word-of-mouth business, competitive advantages, and working efficiently. It also identifies certain variables responsible for customer service. These are organisation culture, product/service range, customer knowledge, delivery systems, service delivery environment, technology, and employees’ role in service delivery. The note also briefs about MicroSave’s process and tools for customer service.
Passing the buck in East Africa – Money transfers systems: The practice and potential for services in Kenya, Tanzania, and Uganda
This paper is a synthesis of a series of findings of MicroSave’s market research studies on how low-income individuals and small or micro-entrepreneurs transfer money and make payments in Kenya, Tanzania, and Uganda, the three countries comprising the East African Community (EAC). It analyses the reasons for sending money and the regulated services and other ways available to transfer money on the basis of interviews with microfinance clients as users and banks and other service providers in all three countries. Combining their perspectives with complementary research, the paper identifies gaps and weaknesses in the existing money transfer services. These gaps offer a market opportunity for new or different services, including the potential for services by microfinance institutions (MFIs)
Corporate Brand and Identity – Why They Are Important for MFIs
Branding decides the position, reputation or image of an organisation in the market whether they want one or not. This briefing note focuses on significance of corporate branding and lessons learned therein. It states that brand development should start with the MFI identifying its competitive advantage, or the advantage that it wishes to promote given its target market’s needs and expectations. It also discusses positioning statements and corporate identity for an MFI wishing to adopt/or has adopted the market led approach and role of corporate communications and public relations.
Adapting Market Research Tools to Diverse Environments – Lessons from Europe
This note documents the lessons of several member organisations of MFC and selected microfinance institutions (MFIs) in Turkey, the Balkans, and the Caucasus that have applied the MicroSave toolkit, along with other tools, successfully. The note suggests prioritising the problems and opportunities before conducting any research and thinking creatively according to cultural sensitivities while adapting tools. It also suggests the MFIs to use a mix of techniques in doing a research while building the capacities of the existing staff in order to avoid biases. The note recommends for a careful selection of appropriate tools, open towards changes or modifications as per the need and its pre-testing before its implementation.
GRAMEEN II – At the end of 2003 – A ‘grounded view’ of how Grameen’s new initiative is progressing in the villages
This paper in a nutshell outlines what Grameen II is and how it works. It discusses the similarities between old and new Grameen, in respect of the delivery environment, group responsibilities, branch opening procedures, loan loss provisioning and write-off, staff performance incentives, and computerisation. It comments on branch performance and concludes that Grameen II is good for Grameen. The paper also discusses some of the more contentious elements – especially loan rescheduling and the drive towards greater flexibility in loan terms. Finally it looks at the impact of Grammen II on the competition building up between MFIs in Bangladesh. It reviews the way that Grameen II is being marketed, and looks at evidence on whether Grameen II is good at attracting and retaining the very poor.